UN Carbon 2013 Premium Rises to Three-Week High as Futures Fall

Oct. 10 (Bloomberg) -- The premium for United Nations emission credits for December 2013 over those for this year widened to the most for three weeks as futures declined a second day.

The spread widened as much as 13 percent to 26 euro cents ($0.33) a metric ton on the ICE Futures Europe exchange in London and was at 25 cents at 11:54 a.m. UN Certified Emission Reduction credits for this year dropped 6.4 percent to 1.77 euros a ton, extending yesterday’s 3.1 percent loss.

European Union carbon permits declined as supplies sold at auctions will jump to 4.25 million tons from today through Oct. 12. Germany and the Czech Republic will sell allowances on the European Energy Exchange AG in Leipzig, Germany on those days. There are another 6.05 million tons for sale next week, further adding to supply.

European Union carbon permits for December, the industry benchmark, fell 1.7 percent to 7.76 euros a ton, taking the loss in the past year to 31 percent.

To contact the reporter on this story: Mathew Carr in London at m.carr@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net